GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GVA - US3873281071 - Common Stock
111.26 USD
+2.84 (+2.62%)
111.26 USD
0 (0%)
Overall GVA gets a fundamental rating of 6 out of 10. We evaluated GVA against 55 industry peers in the Construction & Engineering industry. GVA has an average financial health and profitability rating. An interesting combination arises when we look at growth and value: GVA is growing strongly while it also seems undervalued. With these ratings, GVA could be worth investigating further for value and growth investing!.
1. Profitability
1.1 Basic Checks
In the past year GVA was profitable.
In the past year GVA had a positive cash flow from operations.
GVA had positive earnings in 4 of the past 5 years.
In the past 5 years GVA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.40%, GVA is in line with its industry, outperforming 56.36% of the companies in the same industry.
GVA has a better Return On Equity (15.79%) than 61.82% of its industry peers.
GVA has a Return On Invested Capital (6.20%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GVA is significantly below the industry average of 17.87%.
The last Return On Invested Capital (6.20%) for GVA is above the 3 year average (3.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROIC | 6.2% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 4.31%, GVA is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of GVA has grown nicely.
With a Operating Margin value of 6.08%, GVA perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
GVA has a Gross Margin of 16.39%. This is comparable to the rest of the industry: GVA outperforms 47.27% of its industry peers.
GVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
GVA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GVA has been reduced compared to 1 year ago.
Compared to 5 years ago, GVA has less shares outstanding
Compared to 1 year ago, GVA has a worse debt to assets ratio.
2.2 Solvency
GVA has an Altman-Z score of 2.52. This is not the best score and indicates that GVA is in the grey zone with still only limited risk for bankruptcy at the moment.
GVA's Altman-Z score of 2.52 is in line compared to the rest of the industry. GVA outperforms 45.45% of its industry peers.
The Debt to FCF ratio of GVA is 3.86, which is a good value as it means it would take GVA, 3.86 years of fcf income to pay off all of its debts.
GVA has a better Debt to FCF ratio (3.86) than 67.27% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that GVA is somewhat dependend on debt financing.
GVA has a Debt to Equity ratio of 0.84. This is comparable to the rest of the industry: GVA outperforms 43.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.64
WACC9.63%
2.3 Liquidity
GVA has a Current Ratio of 1.21. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
GVA has a Current ratio (1.21) which is in line with its industry peers.
GVA has a Quick Ratio of 1.12. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
GVA has a worse Quick ratio (1.12) than 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 61.71% over the past year.
Measured over the past years, GVA shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.75% on average per year.
Looking at the last year, GVA shows a small growth in Revenue. The Revenue has grown by 6.87% in the last year.
GVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.57% yearly.
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
3.2 Future
GVA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.48% yearly.
Based on estimates for the next years, GVA will show a quite strong growth in Revenue. The Revenue will grow by 9.62% on average per year.
EPS Next Y38.93%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue Next Year10.92%
Revenue Next 2Y10.76%
Revenue Next 3Y9.62%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.95, GVA is valued on the expensive side.
Based on the Price/Earnings ratio, GVA is valued cheaply inside the industry as 85.45% of the companies are valued more expensively.
GVA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.59.
Based on the Price/Forward Earnings ratio of 17.76, the valuation of GVA can be described as rather expensive.
Based on the Price/Forward Earnings ratio, GVA is valued cheaply inside the industry as 89.09% of the companies are valued more expensively.
GVA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 17.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GVA indicates a rather cheap valuation: GVA is cheaper than 81.82% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GVA is valued cheaper than 87.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.02 | ||
| EV/EBITDA | 12.61 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GVA's earnings are expected to grow with 22.48% in the coming years.
PEG (NY)0.49
PEG (5Y)0.58
EPS Next 2Y24.52%
EPS Next 3Y22.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, GVA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.65, GVA pays a better dividend. On top of this GVA pays more dividend than 87.27% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, GVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has paid a dividend for at least 10 years, which is a reliable track record.
GVA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
12.45% of the earnings are spent on dividend by GVA. This is a low number and sustainable payout ratio.
DP12.45%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
111.26
+2.84 (+2.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners119.35%
Inst Owner Change3.25%
Ins Owners1.09%
Ins Owner Change-0.65%
Market Cap4.86B
Revenue(TTM)4.24B
Net Income(TTM)182.46M
Analysts80
Price Target132.8 (19.36%)
Short Float %10.32%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP12.45%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.76%
Min EPS beat(2)6.79%
Max EPS beat(2)12.74%
EPS beat(4)3
Avg EPS beat(4)29.36%
Min EPS beat(4)-4.36%
Max EPS beat(4)102.29%
EPS beat(8)4
Avg EPS beat(8)12.62%
EPS beat(12)7
Avg EPS beat(12)-128.57%
EPS beat(16)8
Avg EPS beat(16)-113.13%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-4.31%
Max Revenue beat(2)-3.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)1.87%
Revenue beat(8)3
Avg Revenue beat(8)0.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.26%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)-1.36%
PT rev (3m)5%
EPS NQ rev (1m)-2.52%
EPS NQ rev (3m)-10.16%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)2.02%
Revenue NQ rev (3m)0.87%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 17.76 | ||
| P/S | 1.15 | ||
| P/FCF | 14.02 | ||
| P/OCF | 10.5 | ||
| P/B | 4.2 | ||
| P/tB | 8.33 | ||
| EV/EBITDA | 12.61 |
EPS(TTM)5.87
EY5.28%
EPS(NY)6.26
Fwd EY5.63%
FCF(TTM)7.94
FCFY7.13%
OCF(TTM)10.59
OCFY9.52%
SpS97.05
BVpS26.48
TBVpS13.36
PEG (NY)0.49
PEG (5Y)0.58
Graham Number59.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROCE | 10.25% | ||
| ROIC | 6.2% | ||
| ROICexc | 8.61% | ||
| ROICexgc | 12.6% | ||
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% | ||
| FCFM | 8.18% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
ROICexc(3y)5.78%
ROICexc(5y)N/A
ROICexgc(3y)7.39%
ROICexgc(5y)N/A
ROCE(3y)6.06%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
F-Score7
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 78.54% | ||
| Cap/Sales | 2.74% | ||
| Interest Coverage | 9.61 | ||
| Cash Conversion | 114.13% | ||
| Profit Quality | 189.88% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.52 |
F-Score7
WACC9.63%
ROIC/WACC0.64
Cap/Depr(3y)135.78%
Cap/Depr(5y)115.36%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
EPS Next Y38.93%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
Revenue Next Year10.92%
Revenue Next 2Y10.76%
Revenue Next 3Y9.62%
Revenue Next 5YN/A
EBIT growth 1Y80.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year113.54%
EBIT Next 3Y40.17%
EBIT Next 5YN/A
FCF growth 1Y1319.85%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y342.92%
OCF growth 3Y175.18%
OCF growth 5Y32.58%
GRANITE CONSTRUCTION INC / GVA FAQ
What is the fundamental rating for GVA stock?
ChartMill assigns a fundamental rating of 6 / 10 to GVA.
What is the valuation status of GRANITE CONSTRUCTION INC (GVA) stock?
ChartMill assigns a valuation rating of 7 / 10 to GRANITE CONSTRUCTION INC (GVA). This can be considered as Undervalued.
Can you provide the profitability details for GRANITE CONSTRUCTION INC?
GRANITE CONSTRUCTION INC (GVA) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for GVA stock?
The Price/Earnings (PE) ratio for GRANITE CONSTRUCTION INC (GVA) is 18.95 and the Price/Book (PB) ratio is 4.2.
Is the dividend of GRANITE CONSTRUCTION INC sustainable?
The dividend rating of GRANITE CONSTRUCTION INC (GVA) is 5 / 10 and the dividend payout ratio is 12.45%.